FuboTV Stock Drops Despite Improved Earnings Report

The price of fuboTV stock dropped after its fourth-quarter 2021 earnings report on Wednesday, despite annual revenue that exceeded analyst expectations and having narrowed its losses.

The stock’s price during regular trading yesterday declined 4.87%, to $7.62, and was down another 12% in premarket trading this morning, reported Stocks Telegraph.

In February 2021, the stock’s price was at $52.40.

For its first 2022 fiscal quarter, the sports-first live-streaming platform is projecting revenue of about $238.5 million and a $0.54 decline in earnings per share.

For full-year 2022, its guidance calls for revenue exceeding $1 billion for the first time, not including any revenue from its entry into online sports wagering.

Analysts tracked by FactSet had been expecting $238.5 million in overall revenue for Q1 and $1.15 billion for the full year. 

Total revenue for full-year 2021, including revenue from its recent acquisition of the French service Molotov, was a record $638 million. Without Molotov, it was $637 million — up 144% over 2020.

FuboTV ended the year with 1.13 million total paid subscribers, including 186,626 from the Molotov acquisition — up 106% versus 2020. 

2022 subscriber guidance is for 1.028 million to 1.033 million in Q1 and 1.50 million to 1.51 million by year-end 2022. Analysts had been projecting 1.128 million total subscribers for Q1 and 1.543 million by year-end.

Q4 revenue was $231.05 million, up from $105.07 million in Q4 2020, exceeding analysts’ average estimate by $17.7 million and exceeding fuboTV's own preliminary projections, released on Jan. 10, which estimated $215 million to $220 million in total revenue.

Advertising revenue in Q4 was $26.1 million, including $0.2 million impact of Molotov -- up from $25 million estimated in fuboTV's Jan. 10 preliminary projections.

Basic and diluted net loss for Q4 was $112 million or $0.76 per share, versus $195.3 million or $2.47 per share in Q4 2020. Its earnings per share missed analysts’ average estimate by $0.09.

The company closed 2021 with a net loss of $383 million, down from $610 million (on $261.5 million in revenue) in 2020.

By region for 2022, the company is projecting Q1 revenue of between $232 million and $237 million and full-year revenue of $1.08 billion to $1.09 billion.

Subscribers in the region are projected to reach between 1.028 million and 1.033 million in Q1 and 1.5 million to 1.51 million for the full year.

In its other markets, fuboTV is forecasting Q1revenue of $3 million to $6 million and full-year revenue of $15 million to $20 million.

Subscribers in these international markets are projected to reach 235,000 to 240,000 in Q1 and 270,000 to 280,000 for the full year.

“Our fourth quarter closes out an extraordinary year defined by delivering triple-digit year-over-year growth in total revenues, advertising revenues and subscriber growth all while continuing to expand adjusted contribution margin,” said Edgar Bronfman Jr., executive chairman of fuboTV, in a statement. “Within the year, we achieved several important milestones, representing meaningful advancements towards our mission to build the world’s leading global live TV streaming platform with the greatest breadth of premium content, interactivity and integrated wagering. Our progress over the course of 2021 further fortifies our position to continue to execute on that mission in 2022.”

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